Tag Archives: GDP

Sharif’s Growth Push Spurs Pakistan’s Biggest IPO in 8 Years

By 

Pakistan Prime Minister Nawaz Sharif’s push to build power plants, roads and rail links is prompting a local steelmaker to expand by selling shares in the nation’s biggest initial public offering in eight years.

Amreli Steels Ltd., the South Asian country’s biggest maker of steel bars used in construction, plans to raise as much as 4 billion rupees ($39 million) next month from the sale of 70 million new shares. The proceeds will help more than double its capacity to 450,000 tons from 200,000 tons, Amreli’s director Hadi Akberali said in an interview.

Continue reading Sharif’s Growth Push Spurs Pakistan’s Biggest IPO in 8 Years

Catching the dragon

IN RECENT weeks, economists at the World Bank, the International Monetary Fund and Goldman Sachs, a bank, have tentatively suggested that within a year or two, India’s economy might be growing more quickly than China’s. The day came sooner than they had imagined. Official statistics published on February 9th revealed that India’s GDP rose by 7.5% in 2014, a shade faster than China’s economy managed over the same period (see chart). Narendra Modi, India’s publicity-savvy prime minister, could scarcely have hoped for a better endorsement of his first few months in office.

Read more » The Economist
See more » http://www.economist.com/news/business-and-finance/21642656-indias-economy-grew-faster-chinas-end-2014-catching-dragon?fsrc=scn/tw/te/bl/catchingthedragon

Japan’s economy makes surprise fall into recession

Japan’s economy unexpectedly shrank for the second consecutive quarter, leaving the world’s third largest economy in technical recession.

Gross domestic product (GDP) fell at an annualised 1.6% from July to September, compared with forecasts of a 2.1% rise.

That followed a revised 7.3% contraction in the second quarter, which was the biggest fall since the March 2011 earthquake and tsunami. Economists said the weak economic data could delay a sales tax rise.

Read more » BBC
See more » http://www.bbc.com/news/business-30077122

World Bank: India Overtakes Japan as World’s Third Largest Economy

In purchasing power parity (PPP) terms, India is now the world’s third largest economy — surpassing Japan.

By Ankit Panda

In a sliver of good economic news during an Indian election that is widely focused on economic growth, the World Bank announced in a report on Tuesday that India overtook Japan as the world’s third largest economy in terms of purchasing power parity (PPP). According to the World Bank’s International Comparison Program (ICP) data, India holds a 6.4 percent share of global GDP on a PPP basis. The United States remains in first place with a 17.1 percent share and China trails it at 14.9 percent. Japan, while still the world’s third largest economy in nominal terms, holds a 4.8 percent share of global wealth.

Read more » THE DIPLOMAT
http://thediplomat.com/2014/05/world-bank-india-overtakes-japan-as-worlds-third-largest-economy/

Will the Japan trade deal revive globalization?

Japan Trade Deal May Revive Globalization

By the Editors

The U.S. and Japan agreed to terms last week allowing Japan to join talks on the Trans-Pacific Partnership, another step toward creating the world’s most important free-trade initiative. The emerging pact has far- reaching implications for domestic policy in Japan and elsewhere, and could offer a new approach to global as well as regional trade liberalization.

Japan’s participation would widen the TPP to 12 members, accounting for 40 percent of global gross domestic product. The Japanese economy is bigger than all the other non-U.S. members combined. By taking part, Japan is making a commitment to long- overdue domestic economic change. Supply-side reform is one of the “three arrows” Prime Minister Shinzo Abe has promised will revive Japan’s stagnant economy (the others are monetary stimulus and fiscal expansion). In the long term, it’s the one that matters most — and it’s the one that the TPP can provide.

Abe deserves much credit for pressing this part of his program so determinedly. Special interests, especially farming, have supported protectionism in Japan for years. (Rice farmers are shielded by tariffs approaching 800 percent.) The TPP will mobilize Japan’s manufacturing exporters, which will gain directly from the deal, as a countervailing political force.

Farmer Resistance

According to the government’s estimate, annual farm and marine production might decline by 3 trillion yen ($30.3 billion) under the TPP, though other sectors would expand more than twice as much, raising aggregate GDP by 3.2 trillion yen. That’s probably an underestimate, because the benefits would build over time. One independent study puts Japan’s potential gain at more than $100 billion a year (2 percent of GDP) by 2025. ….

Read more » Bloomberg
http://www.bloomberg.com/news/2013-04-14/japan-trade-deal-may-revive-globalization.html?alcmpid=view

Afghan Tax – GDP Ratio 11%, Pakistan 9%

Afghans warned: the taxman is coming after you

By Katharine Houreld

KABUL (Reuters) – One of Afghanistan’s most surprising success stories lies tucked away on a potholed street notorious for suicide bombings and lined with rusting construction equipment.

The work of the country’s top tax collector is more inspiring than the view from his office in Kabul. Taxes and customs raised $1.64 billion last financial year, a 14-fold increase on 10 years ago. That means, now, the government can pay just over half of its recurrent costs such as salaries.

Thanks to tougher enforcement procedures, Afghanistan’s tax to GDP ratio today stands above 11 percent – ahead of neighboring Pakistan’s dismal 9 percent.

Continue reading Afghan Tax – GDP Ratio 11%, Pakistan 9%

Canada drops out of top 10 most developed countries list

The United Nations human development index now ranks Canada as 11th

By the Canadian Press

Canada has slipped out of the top 10 countries listed in the annual United Nation’s human development index — a far cry from the 1990s when it held the first place for most of the decade.

The 2013 report, which reviews a country’s performance in health, education and income, places Canada in 11th place versus 10th last year.

Continue reading Canada drops out of top 10 most developed countries list

Canada is not doing better

Ed Broadbent: Inequality’s a problem for Canada, too

By: ED BROADBENT, The Globe and Mail

I don’t know whether it’s smugness or indifference, but we Canadians can be a self-deluding lot. Growing inequality, portrayed recently in The Economist as a global scourge, when viewed from Canada, seems to be a problem only for others.

After all, it was other countries’ banks that crashed in 2008. It’s in southern Europe that tens of thousands are taking to the streets. And it was in France and the United States that recent elections were fought over the fact that those who created the mess, the top 1 per cent, are still getting big bonuses and low tax rates.

Well, guess what? Canada is not doing better. From 1982 until 2004, almost all growth in family income went to the top 20 per cent, with much of that going to the top 1 per cent, while the bottom 60 per cent saw no growth at all. The increase in inequality in Canada since the mid-1990s has been the fourth highest in the Organization for Economic Co-operation and Development.

But does this matter? Yes, the evidence is in, and the conclusion is clear: Inequality does matter. In terms of social outcomes, more equal societies do better for everyone, not just for the poor, in almost every respect: health outcomes, life expectancy, level of trust in society, equality of opportunity and upward social mobility. A recent study showed that if Americans want to experience the American Dream of upward mobility, they should pack up and move to Sweden. They would have to leave the most unequal democracy and move to the most equal.

Continue reading Canada is not doing better

CBC – Canadian quality of life hammered by recession

Index shows turnaround in GDP growth no boost to quality of life

Canada’s economy may well be muddling through, but on a more personal level, Canadians generally are not, a new study of well-being suggests.

The Canadian Well-being Index, led by researchers at the University of Waterloo, shows that quality of life in Canada deteriorated by 24 per cent between the onset of recession in 2008 and 2010.

Canada’s main economic indicator, gross domestic product, only declined by about 8.3 per cent over the same period and began to make a turnaround by the end of 2010. ….

Read more » CBC
http://www.cbc.ca/news/canada/story/2012/10/23/well-being-index-canadians.html

Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

PAKISTAN’S national poet, Muhammad Iqbal, believed the subcontinent’s Muslims needed to unite if they were to prosper. Without a strong sense of nationhood, he wrote, “mountains become straw and are blown away in the wind”.

Poetry and taxes do not often mix. But those melancholy lines grace an analysis of Pakistan’s fiscal plight by Ehtisham Ahmad of the London School of Economics. The country’s tax revenues have collapsed. Its debt is almost certainly unsustainable without outside help. And yet Pakistan does not pull together. “Textile lobbies, the urban gentry, traders and agriculturists, all point to the other and say: Tax that group first, but do not tax me,” Mr Ahmad writes.

The tax authorities can identify a mere 768,000 individuals who paid income tax last year. Even fewer—just 270,000—have paid something in each of the past three years. That is one reason why Pakistan’s tax revenues amounted to only 9.1% of GDP in the latest fiscal year, one of the lowest ratios in the world (see chart). These are exceedingly narrow shoulders on which to rest a nuclear-armed state of 180m people. The culture of cheating starts at the top. Most members of parliament, many of them conspicuously affluent, do not file tax returns.

In the months before an election, due by May, the government of President Asif Zardari of the Pakistan Peoples Party (PPP) is proposing a controversial remedy: an amnesty for evaders. They will be invited to wipe the slate clean with a one-off payment of only 40,000 rupees ($400). The government says it is a quick way to resuscitate the public finances and expand the tax net. Its critics see the amnesty as a boon for politically connected crooks.

Continue reading Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

Pakistan’s tax-GDP ratio is at the same level as Ethiopia and Afghanistan – Shahid Kardar

Tax reform agenda for next government

By Shahid Kardar

Pakistan has one of the lowest tax to GDP ratios and, even considering developing countries alone, it is in the bottom ranked nations in terms of the proportion of population registered as taxpayers – less than 5 percent. of household population. There is rampant tax evasion, partly with the collusion of the official machinery. Whereas 3.1 million people have the National tax Number, a mere 1.2 million filed an income tax return in 2010/11. What is even more startling is that of 47,800 companies that have NTNs, less than 16,800 filed an income tax return against 400,000 industrial electricity connections.

As admitted by FBR, there is a tax gap of 79 percent. (the difference between potential revenues under the existing system and that actually collected). Revenues can be raised through broadening of bases, improving the equity of the tax regime, incentivising documentation, checking evasion by embracing a zero-tolerance policy, checking harassment of, or collusion with, taxpayers by simplifying tax returns and making FBR a faceless bureaucracy, with interaction between taxpayers and tax officials limited through greater reliance on automated computerised systems.

The general tax reforms would include taxation of all incomes of same levels equally irrespective of source, with a swift reversal of the travesty of the recent amnesty granted to trading in shares. There is also need for legislation that will render all Benami Transactions illegal and subjecting all cabinet members, who should all be taxpayers, to detailed tax scrutiny throughout period of office, and they should all be taxpayers. The tax returns and Wealth Statements of all parliamentarians and holders of key public offices and their spouses (including Secretaries, Chief Justices, Chief of Army Staff, Governor State Bank, Auditor and Attorney Generals) should be public during period of office and one year thereafter. Finally, following good results of tax mobilisation initiatives, individual and corporate income tax rates and the GST rate could be lowered under a phased programme.

 

The specific reforms under different tax heads would be the following: For Income Tax: Greater dependence needs to be placed on technology and through that on the CNIC for tracking commercial transactions to identify potential tax evasion/evaders, including movements in bank accounts of large deposit holders. The FBR should periodically reconcile the property tax registers of all provincial governments, names of credit card holders and members of private clubs with those allotted National Tax Numbers, for the system to generate notices to non-filers. All presumptive taxes should be replaced by withholding taxes (which presently contribute 60 percent. of income tax revenues). And the rates of all withholding taxes should be increased by at least two percentage points as a revenue enhancing measure, to incentivise documentation and penalise those trying to avoid capture in the tax net. ….

Read more » The News

Hopelessness to doom: Pakistan’s journey

Pakistan

by Malik A. Rashid

BBC reported, “The US is so concerned about security in Pakistan that it is considering plans to enter the country to prevent extremists getting hold of nuclear material”. According to Senator McCain, Pakistan’s ISI has connections with the Haqqani network. In his confirmation hearing Lt. Gen. John Allen said he is aware that explosive devises used against American forces in Afghanistancome from Pakistan. Adm. McRaven thinks Pakistanis know where Mulla Omar is. So, the US-NATO has enemies in Pakistan in their cross-hair.

But the war is not the root cause of the predicament Pakistan finds itself in. Declared #12 on the list of failed nations, Pakistan is the 3rd most dangerous country for women. Out of 70 million between 5 to 19 year old Pakistanis, only 30 million go to school. On education and health care together, government spends about 1% of the GDP. Pakistan’s rulers prescribed a low quality education for their public school system to keep commoners from joining the ranks of army officers and bureaucrats.

US have cut aid to Pakistan. Installment of IMF’s loan was declined because the government could not raise taxes. Pakistan’s economy grew by 2.4% in 2010-11, slower than Somalia’s economy which grew 2.6%. Population of the cities continues to rise; so does joblessness.

Since 75% of supplies to US and NATO troops in Afghanistan will be re-routed through North of Afghanistan by the end of this year, not only the war has turned unrewarding for Pakistan’s rulers, it challenges their power and state’s existence.

Army relied heavily on proxy-warriors to influence other countries in the region and manipulated international aid through terrorism, while the generals indulged in enriching themselves. The business empire of the Military Inc. continued to grow at the expense of dwindling electricity supplies while millions of citizens fell below the poverty line. A conflict with the world-powers has shaken the brazen and brutal power structure of Pakistan. …

Read more → ViewPoint

Making the hard decisions to set our house in order

By Najmuddin A Shaikh

Last week, I had expressed hope that in the coming days we would make the hard decisions needed to prevent our country from sliding into anarchy and chaos. We would not then remain the country to which Muammar Qaddafi would point as an example of what could happen to Libya if his dictatorial regime was brought to an end.

Developments during the past week have not, to say the least, been encouraging. First we had the budget, in which no genuine effort seems to have been made to raise the tax base or to address impediments — energy shortages among others — and yet we have concluded that our deficit will remain under control and that growth will have an upward trajectory. Are we going to continue to go down the path of foreign aid dependency and have a government ‘of the elite by the elite and for the elite’ that taxes the poor and the now dwindling middle class mercilessly to nourish the ‘fat cats’ in the ranks of the bureaucracy and the political establishment? Can we not levy direct taxes that would bring the tax-to-GDP ratio to at least 15 per cent? Can we not spend more on education and health? Can we not stop treating the defence budget as beyond question? …

Read more : The Express Tribune

Professional Beggars at their best … but .. Beggars are not choosers!

Vice President Joe Biden is the latest high level U.S dignitary to visit Pakistan. As the series of such high profile visits continues, one wonders what actually transpires in such meetings and what kind of assurances are given from both sides to each other. In this episode of Reporter, Arshad Sharif tries to find out what PM Gilani meant when he said that he has given assurances to Joe Biden that practical steps will be taken to resolve all the difficult problems.

Courtesy: Dawn News (program Reporter with Arshad Sharif)

Source- You Tube Link

Pakistan Budget : DEFENCE SPENDING

Pakistan will increase its defense spending by 17 per cent in the 2010-11 fiscal year to 442.2 billion rupees ($5.17 billion), up from 378.13 billion in 2009/10 and spent only 2% of GDP on education and who cares for Health in Pakistan! that’s why cuts in health sector funds in this budget. Everybody just want every thing free in Pakistan!!?? Nobody is willing to give tax. Even doctors, surgeons and private hospitals who earned billions of rupees from health sector are not willing to give any tax.

To read more on Budget, CLICK HERE to visit BBC urdu or click the following link:

To read BAAT SE BAAT on budget at BBC urdu website, click here or click the following link:

http://www.bbc.co.uk/urdu/pakistan/2010/06/100606_baat_se_baat.shtml

http://www.bbc.co.uk/urdu/pakistan/2010/06/100605_budget_2010_11.shtml